The Covid-19 virus pandemic has inflicted delay on a planned liquefied natural gas (LNG) export project on Canada’s Atlantic Coast, Goldboro LNG, project sponsor Pieridae Energy Ltd. said Thursday.
“Market conditions and the global fallout from Covid-19 have impacted our ability to make a final investment decision this fall,” said Pieridae CEO Alfred Sorenson in the firm’s 2019 year-end results.
“A further announcement will be made once Covid-19 conditions improve and markets stabilize,” management said.
No target date was set for a decision to start building Goldboro at an industrial site on the Nova Scotia coast near the provincial capital, Halifax.
However, Pieridae said negotiations are underway with the project’s prime customer, German utility Uniper SE, on extending the construction decision deadline to June 2021 from the current agreed drop-dead date of Sept. 30.
The first half of the proposed Goldboro project, as designed, would export 5 million metric tons/year, or 650 MMcf/d. The project would use Alberta gas because Canada’s maritime provinces ban onshore drilling.
Pieridae, which reports in Canadian dollars, posted a net loss of $25.9 million (minus 18 cents/share) in the fourth quarter, versus a loss of $8.85 million (minus 17 cents/share) in 4Q2018.
Year-end Pieridae gas production, including additions from a mid-2019 purchase of Shell Canada Ltd.’s southern Alberta assets, was 204 MMcf/d.
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